Question

From the financial statements and additional information provided in Problem 21B-1 for Dean Company, prepare a statement of cash flows using the direct method.From the income statement (Figure 21.17) and balance sheet (Figure 21.18), along with the additional data for Dean Company, prepare a statement of cash flows using the indirect method.

Additional Data1. All Plant and Equipment was purchased with cash.2. Sold additional 7,000 shares of stock for cash at par.3. A $1,500 dividend was declared and paid.4. Short-term notes used to finance inventory.In FIGURE 21.17DEAN COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2012